Markets remained choppy overnight, with no major surprise economic data releases and US Bond Yields drifted off recent highs. The Kansas City Fed Manufacturing was noticeably lower, but the Philly Fed region saw a spike higher, so mixed messages confused market direction. Weekly Jobless Claims came in, broadly in line with expectations, so there was little to support significant moves in either direction. The softer Bond yields allowed the EUR to push up to 1.1360, while the GBP attempted to regain 1.3500.
The RBNZ indicated a rise in inflation expectations and look likely to raise interest rates, when they meet again next week. This has given short term impetus to the NZD, which jumped above 0.7030, while the AUD languished around 0.7270. The rising threat of inflation is being addressed by the RBNZ, but inflationary pressures in Australian remain benign.